Patricia has offered its clients the option to convert their balances into company shares in order to settle a $2 billion debt. While some believe it, others have reported ambiguous discussions about future collaborations with the crypto exchange.
Customers unhappy as withdrawals stall
Customers are frustrated because they have been unable to withdraw monies from Patricia for more than six months. One customer conveyed his displeasure, saying,
“They said they are turning my money into shares, and I have no choice right now,” according to a statement shared with Techpoint Africa, a digital media company.
In an audio recording provided to the company, a Patricia representative said, “We have found investors but this is the only thing keeping us. This is the best we can do right now.
It is most likely our last resort. We just need your cooperation.” The representative assured customers they would eventually have access to their funds even after conversion to shares.
Controversial Patricia Token Swap
Patricia controversially switched users’ assets, which were previously held in Naira or Bitcoin, with a newly created native token, Patricia Token (PTK), without their knowledge two months ago.
According to Bolu Abiodun, a Blockchain journalist, this conduct is in violation of Securities and Exchange Commission norms, which require firms launching tokens for Nigerians to submit a plan to the SEC.
Promised repayment amid freezing of withdrawals
Patricia froze withdrawals after a cyber hack in 2022 resulted in losses of approximately $2 million. Hanu Fejiro, Patricia’s founder and CEO, announced plans to begin repaying clients at a town hall gathering last month.
The specifics of how this would be accomplished, however, remained unknown.
Multiple updates, zero withdrawals
Customers expressed their frustration with Patricia’s frequent updates but no clear schedule for when they may retrieve their monies. Many others have been stuck with the funds for months. Nelson, a customer with $4 million ($5,224) in his account, has been unable to withdraw for nearly seven months.
Conversion to Patricia shares
Patricia introduced its native token, PTK, as a means of repaying costumer funds in August. This action, however, was regarded with scepticism.
Patricia highlighted that the tokens were effectively debt tokens (IOUs) intended to acknowledge the company’s debts to customers. Customers, however, complained that their PTK balances remained zero.